Five years after the financial crisis, U.S regulators have unveiled proposals that would force big banks to become more conservative or to shrink. Michael Crittenden joins MoneyBeat. Photo: AP.

This transcript has been automatically generated and may not be 100% accurate.

... nearly five years after the collapse of Lehman Brothers ... the two thousand and eight ... the US is putting forth a plan to try to force the big banks become more conservative where shrink ... is today's page one Wall Street Journal story am Michael Crittenden who wrote that story ... joins us this morning on MoneyBeat from our DC bureau Michael hell are you ... I there they said in a ... what one does take five years to people a say ... on pay you know was ... going to put aside more money ... well I mean it's not that they have an undue advantage obviously the Dodd Frank law there's all the cleanup ... aam after the financial crisis I think what this is this is the second you know this is the big play from the Apple basically we had to ... traders had the surfing around the landscape we had to clean everything up ... and and this is the way they've they've served with the things is ... now that they things are settled that Dodd Frank being a major pieces are plays some are still in waiting ... aam ... now they're spending their real sense of what's out there what they want was or what their vision for the big banks is in ... and that vision is of more conservative than if they can ... encourage them to give it smaller ... right now ... there's plenty here behind it is ... that that the Fed offers a calm Foley FDIC will force the banks to hold more capital against their assets in ... cases in the financial crisis ... what I thought was interesting is that they were looking at usually we total risk based assets that may ... be this plan would have the banks have to put aside more money against all of their assets right ... ratings at least so they say they're it ... the way they look at aam typically regulators around the world of ... in recent years and really look at ... you know let's let's for riskier assets let's make use of Hallmark Apple for those ... on in this case they're taking serve a blunter approach of which is favored by some folks especially at the FDIC ... which is you know ... that many on how big you are total assets already make you hold more capital so the bigger you get the more costly it's can be ... aam Yellen said when a hard cap on the bank's what they're saying is ... you know the bigger the more risky aam you get to be your footprint know we're gonna make you hold the bigger question so that when things ... if and when things go bad you have a you know a bit more ... aam safety threat ... some firms the government didn't do that some firms have started to ... calculate what the shortfalls might be ... with the big banks ... and it seemed like most of the big ones would find themselves ... well short of what's required and that this ... here I mean right now if this had been in place ... the Raiders estimated to set in place last year for having this five x eight banks of course it's the a P O global systemic U S banks ... compensate BankAmerica City ... aam ... they say what you seen the there would be a shortfall has of him plays during last year's Fed stress test ... now ... they'll have to comply with this till two thousand eighteen so they have plenty of time ... operators say said yesterday of a base of the projections from the bank's internal regulatory protections ... you know everyone to meet this need the standard bike twenty eighteen ... aam probably easily ... onto the bag sorry estimated BankAmerica Wells Fargo ... probably are a mean of me these new requirements ... aam but this is the US are part and parcel of a broader approach would just give ... foresees banks continue to hold more Mark Apple when the Fed ... the Fed and other Raiders of Ari basically signaled the rest of this year even as he is a series of these proposals ... aimed at DZ Bank system can make sure that their bigger cushions that ... what ... we saw the storyline for so I might my first thought was ... on the industry the water this thing down to that I mean ... is this something that the regulators can just ... put in ... as they walk or does this have to go ... to some kind of congressional hearings as what the process for getting this in place ... I know congressional hearings though I'll we have a lot on down here on the issue of too big to fail ... and ... on radio in ... on what the regulators are doing in fact the Senate Banking to May's to meet tomorrow the service that's what reviewers are doing ... on the proposal yesterday leverage basically they're sixty days for a ... people the public to comment so obviously that's faced with made up of a ... industry groups in the banks themselves ... aam ... and they say the Raiders a look at those comments of studios make any changes ... I they think are necessary ... aam which is is a chance to moderate up from what reviewers of done ... on if you look at from an industry perspective ... on in this case though I had the radio there's ... this scene for the resolute on this is what they wanted to ... ALM ... so they say to yell you might see some of political pressure from the hill that yesterday that the reaction ... from lawmakers from both Democrats and Republicans was aam ... knowing that this is a good idea that that that that made it to go far enough so I mean there's there's a big appetite too ... to serve address these issues of me I think ... you know Brownlee people think that's ... probably Folkestone think we've dealt with the issue too big to fail banks higher Michael Crichton in from DC thank you very much ...